Blizzard Entertainment’s Overwatch 2, a team-based multiplayer first-person shooter game, has recorded its highest profits ever following the introduction of its new monetization approach. Despite criticisms from long-time fans over the new approach, it has become more lucrative than the previous model, which offered free skins. Though the move caused a backlash from fans, the recent earnings report from Blizzard shows that the new model has paid off for the company, at least in the short term.
OW2 PROFITS: MODERNIZING THE FINANCIAL MODEL
Overwatch 2 has gone free-to-play with the introduction of the Battle Pass, which players have to purchase using real money. This new model of monetization has replaced lootboxes and the ability to get skins without spending real-world cash. Though free-to-play games are usually accompanied by more aggressive monetization, Overwatch 2 has gone a step further, which many fans criticize. The recent earnings report from Blizzard shows that the change in the financial model paid off in the short term.
NEW MONETIZATION MODEL: A MISSTEP?
The high cost of the skins and Battle Pass in Overwatch 2 compared to other free-to-play games like Fortnite has drawn much criticism from fans. For instance, Fortnite offers enough premium currency in its Premium Battle Pass to fund the next one and a bit more. Meaning, players who make a one-time purchase can always get the next one provided they play a normal amount, giving them access to free cosmetics. However, this is not the case for Overwatch 2, which requires a flat real-money fee for each premium Battle Pass and skin. Many fans dubbed it the greediest Battle Pass ever. Although Blizzard has addressed the problem to some extent, it’s not yet satisfactory.
OVERWATCH 2 RECORD PROFITS: GAME MAKES OVER $100 MILLION
Overwatch 2 has achieved record profits for the franchise, earning over $100 million in net bookings in the last three months of 2022, coinciding with the game’s highest period of popularity. This is the highest quarterly figure ever recorded for the franchise. The game’s free-to-play model is credited with its financial success, and it has also seen record player numbers in the same period. Despite the recent success, Overwatch 2 record profits are unlikely to be sustainable.
CAN OVERWATCH 2 RECOVER FROM THE GREED?
While the record-breaking profits are good news for developers, the future remains uncertain. The game’s monetization model has been scaled back, with Blizzard restoring a way to purchase skins using earnt currency, which is earned in-game rather than bought. Blizzard will also introduce more entirely free skins, which are earned through challenges, and provide premium currency with the next Battle Pass. The current approach shows that Overwatch 2’s record profits came at a big price. Free-to-play games require a long-term investment to engage players, and Blizzard may have scared away many occasional spenders with its initial greedy approach. Additionally, player numbers and sentiment towards the game turned negative shortly after the launch. Therefore, the future success of Overwatch 2 depends on how well Blizzard can engage its players while balancing its monetization strategy.
